This report analyzes the major macro-environmental factors impacting Burger Fuel, a New Zealand-based restaurant. It examines the theoretical implications of these factors and their impact on the organization's strategical plan and implementations. The report aims to determine potential opportunities and threats for Burger Fuel.
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Running head: MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL Macro Environment Analysis on Burger Fuel Name of the Student: Name of the University: Author Note:
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1MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL EXECUTIVE SUMMARY The primary objective of the particular report is to study a food organisation named Burger Fuel.Thestudyfocusesonanalysingthemajormacro-environmentalfactorsofthe organisation. Further, the study examines the theoretical implication of those significant factors and their impact on the concerned product. This helps the survey to determine the potential opportunities and threats for the Burger Fuel that may help them in their future strategical plan and implementations.
2MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL Table of Contents Introduction................................................................................................................................3 Analysis of the Macro Environmental Factors...........................................................................3 Political factors.......................................................................................................................4 Economic factors....................................................................................................................6 Social Factors.........................................................................................................................7 Technological factors.............................................................................................................9 Conclusion................................................................................................................................10 References................................................................................................................................11 Appendices...............................................................................................................................14 Appendix 1...........................................................................................................................14
3MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL Introduction The product chosen for the study of the given report isBurger Fuel(Vandevijvere, Aitken & Swinburn 2018). The concerned organisation isidentifiedas the industry of hotel management. Burger Fuel is analysed as a New Zealand based restaurant that specialises in servicing of food products. The concerned organisation has abackgroundof owning a franchise in around six countries and one remote located area in 88 locations with an approximate of 54 in New Zealand itself. The excellent fast foods served by the concerned organisation included a menu of vegetarian and vegan delicacies, variants of hamburgers, chicken and beef dishes as well as fries delicacies. The first commencement of the Burger Fuel was debuted in the year of 1995 in the region of Auckland, New Zealand. Furthermore, the industry was recognised to spread its wings all across the globe in the year of 2007 (Abdul-Razzaq, 2016). Themainoutlineofthisreportisdefinedtoexaminethesignificantmacro- environmental factors that impact the effectiveness and efficiency of the working structure of the organisation. In this viewpoint, the report critically explains the theory of the four major elements that follows with the demonstration of the application of the same to the concerned industry. Analysis of the Macro Environmental Factors As implied by Charter & Tischner (2017), the macro environmental factors are those external factors of a business environment that are uncontrollable. These factors influence the decision making process of an effective organisation. The critical analysis of the proposed theory of macro environmental factors helps in the determination of the possible threats and opportunitiesforthebusinessentities.Inthisconnection,thefourmajormacro-
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4MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL environmental factors that impact the Burger Fuel can be determined with the help of the theory of PEST analysis. The same is specified as below. Figure 1: Showing Macro Environmental factors with the help of PEST analysis (Source:Based on Bowie, Buttle, Brookes & Mariussen 2016) As illustrated in the above diagram, it can be examined that the four major factors of the macro environment creating an impact on the Burger Fuel can be briefly described as follows. Political factors As opined by Nonet, Selznick & Kagan(2017), a business firm is liable to consider the political system, laws and norms and the legal considerations of the country they are to establish their business. The concerns of the political factors provide the industry with Political Support of Government in terms of globalization. Stability of political determinants in market. Support of government in the e-commerce business. Economic Expansion in the international agreement of trades and tariffs. Better economic growth in the perspective of developing markets. Social Increment in the diversity of the consumers. Health and safety consciousness. Technological Change and improvement in the factors of innovation. Research and Development activities.
5MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL economic strength to its local and international trade and business prospects. In this context, as specified in the above-illustrated diagram the political factors affecting the Burger Fuel are explained as follows. Support of Government in terms of globalisation One of the significant impacts of the political factor is the support of the government in terms of globalisation. The effect of foreign direct investments creates a positive growth both in the economy andthe wealth condition of the country. As implied by Siggel (2016), an increment in the trade rates and FDI, consequently resulting in increased growth rates of economic condition. Furthermore, the support of the government in the globalisation leads to lower growth of increase in the tax and tariff rates. In this connection, researches show that the support from the government has proved beneficial to Burger Fuel as they gain the opportunity to earn better revenue for themselves with the help of better and effective trade and tariff rates (Cruz & Alley, 2017). Stability of political determinants A second vital aspect that is determined under the political factors is the adaption and implementation of political considerations. The adaption of these factors in a business firm is a sign of gaining political stability in the business environment. As stated by Rosenbloom (2018), political factors impact the administrative practices of a business entity. The political factors create a huge impact on the security aspect, employment, immigration of employees, customer and employee protection and tax regulations. Thus, the stability of political determinants turns out to be an opportunity for the concerned Burger Fuel organisation. The impact of political factors in terms of Burger Fuel ensures the increase in the employment scale, smooth transfer of staffs from one country to another and the security and safety of its employees (Bratton & Gold, 2017).
6MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL Support of government in the E-commerce business The next vital political factor analysed with the help of the report is stated to be the government support in easing the business prospects in the context of e-commerce strategies. The theory of the above mentioned element indicates that the government plays a crucial role in supporting the adaption of E-commerce techniques concerning business and its working procedures. The government advocates in the legal recognition of the electronic commerce to be used in a business entity and also ensures that the consumers are protected from the risk of fraudulence while opting for shopping their desired products through the means of the online business platform (Winn, 2016). In this connection, the application of the same concerning Burger Fuel is analysed as an opportunity for the concerned business entity. The mentioned ideology creates an impact in the working of Burger Fuel in the connection that guarantees the right of legal use of e- commerce to the industry as well as the customers so that both the industry and individual privacy to use of electronic commerce is breached (Deckers & Lacy, 2017). Economic factors As opined by Granovetter (2018), the theoretical implication of economic factors in the business is termed to be a bread and butter technique for the business firm. This is because the analysis of the economic factors in a business entity plays a crucial role in the decision making the process for its future working and plans and especially the financial decisions. As specified in the illustrated diagram the brief of the economic factors that impact the working of Burger Fuel can be explained as follows (Refer Appendix 1). Expansion in the international agreement of trades and tariffs Analysed as one of the crucial economic factors, the approval of trades and tariffs is the legal agreement of global trade between two or more countries (Rugman & Verbeke,
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7MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL 2017). The theory of this factor focuses on promoting international trade considerations in a business organisation. This, in turn, helps in reduction and even elimination of the trade barriers like tariff rates between the countries involved in the business process with each other. In this viewpoint, the impact of the above economic factor on Burger Fuel is examined to affect the interest and exchange rates of the industry both in the local and global sector. The implication of the international trade and tariff rates help in the determination of the aspects that defines the operating section of the Burger Fuel with potential companies established in other countries (Ozturk, Joiner & Cavusgil, 2015). This, in turn, impacts the local and global trade relations of Burger Fuel positively and can term to be an opportunity for the concerned industry if executed effectively and efficiently. Better economic growth in the perspective of developing markets. The theory of the above mentioned economic factor sets the ideology of economic development with the increase in the quantity of the resources and also keeping pace with the change in the technologies (Tietenberg & Lewis, 2016). Thus, increasing the value of innovation strategies implemented in the business entity. According to the viewpoint of the above mentioned economic factor, the application of the same on Burger Fuel was analysed to make changes in its existing plan and strategies of innovation and technological policies (Grant, 2016). It helped the concerned industry to implementeffectiveandefficientinnovationtechnologiesthatinturnincreasedthe competitive advantage of Burger Fuel in the market structure. Social Factors As implied by Janssen, Davies, Richardson & Stevenson (2018), the social factors in a food industry impact the physical determinants and food choice of the end consumers. These
8MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL factors influence the forces within the business and society. It tends to affect the behavioural attitudes, opinions and absorption of the potential customers and end targeted market. The social factors impacting the working of Burger Fuel can be briefed as below (Refer Appendix 1). The increment in the diversity of the consumers. One of the vital social factors of the PEST analysis is determined as the diversity rate of the consumers (Oraman, Unakitan, Konyali, Basaran & Abdikoglu, 2018). The implied theory of this factor states that knowing and building healthy relationships with potential customers is necessary to gain the advantage of customer service and efficiency. In this connection, the impact of the same to Burger Fuel is recognised as an opportunity for the industry. This is because the implication of the mentioned factor helps Burger Fuel to identify their potential customers and ways of communicating to them (Kandampully & Bilgihan, 2015). This helps the industry to seek the cultural aspects of the customers relating to their taste and preferences. Thus Burger Fuel gets liable to entice diversified customers which in turn builds a pluralistic workforce environment for the industry and innovation of their products as per the choice of their potential consumers. Health and safety consciousness The above mentioned factor is considered to be the most vital factor for every business entity to believe in its strategic plan of working. As opined by Peltier (2016), the health and safety concerns of the employees should be the prior policy and procedure to be considered by every effective organisation. No employee would be comfortable working in an organisation where the individual does not feel safe to operate. In this connection, the mentioned factor can be analysed as both an opportunity and threattoBurgerFuel.Thepositiveimpactofimplementingthehealthandsafety
9MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL consciousness will help the industry to retain its employees in the long-run. Whereas, the threat is the legal and lawful considerations relied on the same which may bring trouble to the industry for its sustainment (Hitchings, 2016). Technological factors As opined by Biemans (2018), the technological elements are those who influence the behavioural attributes of the customers and potential market for the change in technologies andinnovationprospectsinventedinthemarket.Themajortechnologicalfactorsas mentioned in the given report creating an impact on Burger Fuel can be explained as below (Refer Appendix 1). Change and improvement in the factors of innovation. Analysed as one of the factors of technical analysis of PEST model, the principal theory of this factor is examined as changing the innovation process of products and services marketed by every business entity. As opined by Schwab (2017), every business entity is liable to keep pace with the change in trades and trends in the technology and innovation factors to survive in the market. In this connection, the impact of the mentioned factor to Burger Fuel is analysed as both threat and opportunity. The danger being examined as the cost of production and investmentincreasesbecauseofthefrequentchangeintechnologicalactivities.The opportunity is reviewed as the stability of the firm in the long run because of the brand and customer loyalty the industry would earn with the advancement of changes taken into consideration (Liu & Alexander, 2017). Research and Development activities. Another essential theory of the technological factors is determined as the activities of the research and development process. As stated by Sekaran & Bougie (2016), these activities
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10MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL are the ones which are conducted in the context of studying and understanding the market structure of the business environment that helps the industry to make necessary changes in their business. In this connection, the impact of the above theory to Burger Fuel is considered as an opportunity for the industry. The implementation of the above factor helps the industry to develop new products and services to their potential customers (Cusumano, Kahl & Suarez, 2015). It also lets the industry to understand the strategical implications of its potential competitors and act accordingly to gain a competitive advantage in the market. Conclusion To bring to an end, with the help of the study of the given report it is analysed that the macro environmental factors create a great impact on the overall working and conditioning of any organisation. The economic condition and the end customers are all influenced by the forces of the macro environmental theory of market. Therefore, every business entity should be critically focused while conducting and considering their strategies towards the macro environmental factors of the business environment. In the connection of achieving long terms success and gain brand and customer loyalty, the company has to be critically focused on promising effective and efficient implementation of these factors in their entrepreneurship.
11MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL References Abdul-Razzaq, S. (2016). Halal, New Zealand! An Exploratory Study into the halal- friendliness of Accommodation Providers in New Zealand. Available at: https://ir.canterbury.ac.nz/bitstream/handle/10092/11923/Razzaq%2C%20Serrin %20MCom%20thesis.pdf?sequence=1 Biemans, W. (2018).Managing innovation within networks. Routledge. Available at DOI: 10.4324/9780203701409 Bowie, D., Buttle, F., Brookes, M., & Mariussen, A. (2016).Hospitality marketing. Routledge. Available at DOI:10.4324/9781315682549 Bratton, J., & Gold, J. (2017).Human resource management: theory and practice. Palgrave. Available at: https://www.researchgate.net/publication/305954894_Human_Resource_Management _Theory_and_Practice Charter, M., & Tischner, U. (Eds.). (2017).Sustainable solutions: developing products and services for the future. Routledge. Available at DOI:10.4324/9781351282482 Cruz, J., & Alley, C. (2017). An analysis of how future investors and small financial institutions in New Zealand can avoid the effect of double taxation on corporate profits. Available at:http://researcharchive.wintec.ac.nz/6037/ Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the competitive strategies of product firms.Strategic management journal,36(4), 559- 575. Available at DOI:10.1002/smj.2235 Deckers, E., & Lacy, K. (2017).Branding yourself: How to use social media to invent or reinvent yourself. Que Publishing. Available at: https://www.oreilly.com/library/view/branding-yourself-3rd/9780134786636/ Granovetter, M. (2018).The sociology of economic life. Routledge. Available at DOI: 10.4324/9780429494338 Grant, R. M. (2016).Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Available at: https://www.academia.edu/35804421/Th.Edition.Wiley.Contemporary.Strategy.Analy sis.Text.and.Cases.Edition Hitchings, H. (2016). The Unquantifiable Self: An exploration into the relationship between users and their activity trackers. Available at: http://researcharchive.vuw.ac.nz/handle/10063/6647 Janssen, H. G., Davies, I. G., Richardson, L. D., & Stevenson, L. (2018). Determinants of takeaway and fast food consumption: a narrative review.Nutrition research reviews,31(1), 16-34. Available at DOI: 10.1017/S0954422417000178 Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: a review and future directions with a special focus on the hospitality industry.International Journal of
12MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL Contemporary Hospitality Management,27(3), 379-414. Available at: https://www.emeraldinsight.com/doi/abs/10.1108/IJCHM-03-2014-0151 Liu, H., & Alexander, P. (2017). Analysis of the impact of advertising and the use of social media regarding product sales. Available at:http://researcharchive.wintec.ac.nz/6062/ Nonet, P., Selznick, P., & Kagan, R. A. (2017).Law and society in transition: Toward responsive law. Routledge. Available at DOI:10.4324/9780203787540 Oraman, Y., Unakitan, G., Konyali, S., Basaran, B., & Abdikoglu, D. I. (2018). WHAT EXTERNAL AND INTERNAL FACTORS AFFECT ORGANIC FOOD SECTOR?.New knowledge Journal of science,7(2), 33-44. Available at: http://science.uard.bg/index.php/newknowledge/article/view/359 Ozturk, A., Joiner, E., & Cavusgil, S. T. (2015). Delineating foreign market potential: A tool for international market selection.Thunderbird International Business Review,57(2), 119-141. Available at DOI:10.1002/tie.21686 Peltier, T. R. (2016).Information Security Policies, Procedures, and Standards: guidelines for effective information security management. Auerbach Publications. Available at DOI:10.1201/9780849390326 Rosenbloom, D. H. (2018).Administrative law for public managers. Routledge. Available at DOI:10.4324/9780429494239 Rugman, A., & Verbeke, A. (2017).Global corporate strategy and trade policy. Routledge. Available at DOI:10.4324/9780203732342 Schwab, K. (2017).The fourth industrial revolution. Currency. Available at: https://www.weforum.org/about/the-fourth-industrial-revolution-by-klaus-schwab Sekaran, U., & Bougie, R. (2016).Research methods for business: A skill building approach. John Wiley & Sons. Available at: https://www.wiley.com/en-us/Research+Methods+For+Business %3A+A+Skill+Building+Approach%2C+7th+Edition-p-9781119266846 Siggel, E. (2016).Development economics: a policy analysis approach. Routledge. Available at DOI:10.4324/9781315258010 Tietenberg, T. H., & Lewis, L. (2016).Environmental and natural resource economics. Routledge. Available at:https://www.routledge.com/Environmental-and-Natural- Resource-Economics-11th-Edition/Tietenberg-Lewis/p/book/9781138632295 Vandevijvere, S., Aitken, C., & Swinburn, B. (2018). Volume, nature and potential impact of advertisements on Facebook and YouTube by food brands popular in New Zealand.The New Zealand Medical Journal (Online),131(1473), 14-24. Available at: https://www.ncbi.nlm.nih.gov/pubmed/29649193 Winn, L. J. K. (2016). Information technology standards as a form of consumer protection law. InConsumer Protection in the Age of the information Economy'(pp. 109-128). Routledge. Available at:
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13MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL https://books.google.co.in/books/about/Consumer_Protection_in_the_Age_of_the_In. html?id=8sihAgAAQBAJ&redir_esc=y
14MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL Appendices Appendix 1 Figure 1: Showing Macro Environmental factors with the help of PEST analysis (Source:Based on Bowie, Buttle, Brookes & Mariussen 2016) Political Support of Government in terms of globalization. Stability of political determinants in market. Support of government in the e-commerce business. Economic Expansion in the international agreement of trades and tariffs. Better economic growth in the perspective of developing markets. Social Increment in the diversity of the consumers. Health and safety consciousness. Technological Change and improvement in the factors of innovation. Research and Development activities.